Dedollarization

The total mismanagement of the US financial system has led to the dollar losing 98% of it’s value since Nixon closed the gold window in 1971. Most other currencies have followed the dollar down at varying speeds.

The rejuvenation of gold buyers in China is explained by the slowdown in the property market, the weakness of equities and the currency, as well as low bank interest rates. Young Chinese, concerned about economic stagnation, are turning to gold as a financial refuge.

Gold's resistance, which prevented any monthly close above $1,995, was breached, closing at $2,035 on Thursday 30 November. Taking advantage of the gold rally, the silver price broke through the oblique resistance that has held it up since its 2011 high.

The world is now witnessing the end of a currency and financial system which the Chinese already forecast in 1971 after Nixon closed the gold window. Again, remember von Mises words: “There is no means of avoiding the final collapse of a boom brought about by credit expansion.”History tells us th...

Rising interest rates have led to a significant increase in the burden of public debt. The United States now has to pay over $1 trillion in interest, an amount that has doubled in just nine months. This burden is set to rise considerably further, as most of the debt is short-term, requiring refin...

China topped up its gold holdings for a 12th straight month in October, adding to a wave of purchases by global central banks that’s lent support to bullion prices.

Escalating geopolitical tensions and the risk of aggravation in the context of the Israeli-Palestinian conflict are adding new challenges to a fragmented world. The international economic and financial system can only emerge from this situation weaker, as inflation persists and growth remains wea...

Increasingly, countries are beginning to openly express their intentions to strategically explore using gold as a medium of exchange in the coming years. The Malaysian government is now considering using the gold dinar as a reserve currency to reduce dependence on the US dollar.

The reshaping of the world economy and the global order is in full swing. There are powerful factors, such as the shift in economic, demographic and military weight, that are driving the readjustment in the (geo)political arena. And this readjustment is also reflected in the change in gold flows.

The price of gold falls in London while it rises in China. The divergence reported in my last article continues this week. The Chinese gold and precious metals market seems to be following its own trajectory.